An advertising agency used 91 hours of direct labor in creating advertising for a music festival. Direct labor costs $64 per hour. The agency applies overhead at a rate of $53 per direct labor hour. Prepare journal entries to record the agency's direct labor and the applied overhead costs for this job. View transaction list Journal entry worksheet Record direct labor. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal An advertising agency used 91 hours of direct labor in creating advertising for a music festival. Direct labor costs $64 per hour. The agency applies overhead at a rate of $53 per direct labor hour. Prepare journal entries to record the agency's direct labor and the applied overhead costs for this job. View transaction list Journal entry worksheet